The Al-Mg-Sc-Zr alloys exhibit reasonable mechanical properties (e.g. corrosion resistance, weldability, superplasticity) for application in many branches of the industry. They owe their strength mainly to coherent particles of Al3Sc or Al3(Sc,Zr) phase which form during heat treatment at 300 • C. The influence of such particles on mechanical behaviour and microstructure evolution was studied on a twin-roll cast alloy which was subjected to deformation by equal channel angular pressing. Three types of processing of the material were compared: (1) only deformation, (2) deformation and heat treatment and (3) heat treatment and deformation. The deformation by equal channel angular pressing caused fragmentation of the original grains into micrometric grains and subgrains regardless of the presence of Al3(Sc,Zr) particles. The subsequent isochronal annealing with heating rate 50 K/50 min led to both softening and hardening of the material, dislocation recovery and recrystallization of the grain structure, the later was similar in all the studied materials